Second, it may well be that fluctuations in the FTSA transfers to the provinces are highly associated with the evolution of federal funds.
Albeit encompassing nearly a 60 percent of total federal transfers (average for the 1973-1999 period), we deliberately exclude the FTSA due to the several changes this arrangement has undergone since its inception.
Thus, several provinces are deprived from using FTSA monies during the first two weeks of the month.
By means of two fiscal pacts, the argument goes, the provinces lost budgetary autonomy given a cut of 15 percent in the primary distribution of FTSA to the provinces to sustain the proposed nationalization of the social security system.
The study of these grants helps to uncover political dynamics more explicitly than by just tracing the evolution of FTSA.